WILLEMSTAD - The significant budget surplus of Curaçao, which stood at 142 million guilders until the fourth quarter of 2022, has decreased to approximately 22 million, as reported by the Committee of Financial Supervision (Cft) in its semi-annual report to the Kingdom Council of Ministers in The Hague. 

According to the Cft, the cause of this decline is attributed to outstanding bills resulting from increased expenditures in ministries on goods and services, as well as higher subsidy grants. 

In response to this, the Committee of Financial Supervision recommends implementing advance supervision on ministries, coupled with a penalty policy for budget overruns. 

This loss of financial space indicates a larger issue within Curaçao's financial management. The budget for 2023, which seemed to be in balance, needs to be revised based on these new figures. The Cft has emphasized the need for a more precise and up-to-date budgetary approach, especially concerning tax estimates and potential budget risks. 

The recommendations for stricter budget oversight and penalty policies aim to enhance budget discipline and prevent unforeseen expenditures from disrupting the budget in the future. 

Additionally, the Cft has noted that despite the positive steps Curaçao has taken in tax collection, concerns persist about demographic developments such as a shrinking and aging population, which could impact future tax revenues. The organization underscores the importance of implementing structural adjustments to make government finances more resilient against such demographic trends.